Financial technology: an alternative for financing small and medium-sized enterprises in Nigeria

Abstract

This study examines the factors influencing small and medium size enterprises’ (SMEs) decision to adopt Fintech as alternative source of finance. Data was gathered through a five-point Likert questionnaire and analysed via descriptive statistics, factor analysis, and multiple regression analysis. Except for changes in organisational characteristics which revealed a negative effect, changes in all the other three components of external system, innovation characteristics, and staff/individual characteristics revealed positive relationship with SMEs decision to adopt Fintech as alternative financing. Accordingly, this study concludes that Fintech is readily available, accessible, observable, and cost effective for SMEs in Nigeria. It is concluded that SMEs operators are satisfied that the Fintech industry in Nigeria is adequately regulated. Furthermore, the study concludes that Fintech adoption as alternative finance is consistent with SMEs beliefs, attitudes, and values. The study recommends further research on using longitudinal research design to cover SMEs long-term decision-making process.